Millionaires in the Making: The Rodrigueses

Check it out.  Money Magazine just featured another Millionaire in the Making profile: The Rodrigueses.  I’ll add this one to my complete list of Millionaires in the Making, and discuss their profile below.

Not into future millionaires?  Check out this list of Extreme Savers.

The Rodrigueses

At first glance, I thought the Rodrigueses were just another typical get-rich-quick in real estate millionaire couple from California.  Big whoop, right?  If you look closer though, you’ll see that they do have some excellent saving, spending, and giving habits which have them headed towards an early retirement.  In my opinion though, if they don’t cut out some of their unnecessary risk, they may not get there.

The Stats

John and Gina, both only 27, have amassed a net worth of $516K, and have a goal of retiring by 40.  They make a combined $174,000 annually at Microsoft (John), and at a boutique shop (Gina) that they own.

They have about $150k in their 401(k) and $140k in cash savings.  John also has around $90K in stock.  Nice.  The remainder of their net worth is made up primarily of supposed real estate equity and equity in their small business.

The Frugal Life

While the savings is definitely impressive (in both size and how early they started), their spending habits seem excellent for someone of their income.  They only spend $300 annually on clothes, they split meals when they dine out (which is rare for them), and they sold their house to go rent for $600 a month (some one’s been reading Rich Dad, Poor Dad).  They’re really living below their means here.

The Business of Things

John and Gina have a high risk tolerance and entrepreneurial spirit.  They have rental properties in Phoenix and San Antonio which are currently running at a negative cash flow.  They also took on $75K in debt to own a boutique shop.

Risk Without Reward

In typical Money Magazine fashion, the financial experts are unleashed on the Rodridueses’ portfolio.  I agree with what they have to say.  The way I see it, the Rodrigueses are taking on too much risk with the small business and rental real estate.  They could drop both the small business and real estate right now and still have a net worth of around $375K.  With John’s income and some part time work for Gina they could be well on the “secure” path to retirement at 40.

What Others Are Saying

What do you think of the Rodrigueses?  Think they’ll make retirement by 40?

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Last Edited: July 21, 2014 @ 10:41 pm
About Philip Taylor

Philip Taylor, aka "PT", is a husband and father of two. He created PT Money back in 2007 to share his thoughts on money and to meet others passionate about managing their finances. All the content on this blog is original, and created or edited by PT. Read more about Philip Taylor, and be sure to connect with him on Twitter, Facebook, or view the Philip Taylor+ Google profile.